CBN Opens N650bn T-Bills Auction To Mop Excess Liquidity

The Central Bank of Nigeria will auction Treasury Bills worth N650 billion on Wednesday, May 20, 2026, as part of efforts to manage liquidity in the financial system and support the Federal Government’s short term funding requirements.
The auction, which is the second Nigerian Treasury Bills (NTBs) issuance for May, was disclosed in an official tender notice issued by the apex bank on behalf of the Debt Management Office under the Federal Government’s second quarter borrowing calendar.

According to the notice, the CBN will offer the instruments across three maturities through the Dutch auction system, comprising N100 billion in 91 day bills, N50 billion in 182 day bills, and N500 billion in 364 day bills.

Authorised Money Market Dealers are expected to submit bids electronically through the CBN S4 WEB Interface between 8:00 a.m. and 11:00 a.m. on the auction date.

The apex bank stated that the minimum subscription for the exercise is N50.001 million, while bids are to be submitted in multiples of N1,000 thereafter.

Dealers are also permitted to submit multiple bids on behalf of institutional investors and members of the public.
The result of the auction is expected to be announced on the same day, while allotment letters for successful subscribers will be issued on Thursday, May 21, 2026. Successful bidders are also expected to fund their accounts with the CBN not later than 11:00 a.m. on the settlement date. The CBN, however, noted that it reserves the right to vary the amount on offer depending on prevailing market conditions.
Wednesday’s issuance follows an earlier NTB auction conducted on May 7, 2026, where the apex bank offered N700 billion across the same tenors. Market analysts said the 364 day instrument is expected to attract the strongest demand due to its relatively attractive yield profile compared to shorter dated bills.
They also noted that elevated liquidity in the banking system is likely to sustain strong participation from pension fund administrators, asset managers, banks, and other fixed income investors seeking higher returns amid evolving monetary conditions.
Analysts at Cordros Research said robust liquidity conditions in the financial system would continue to support investor appetite in the Treasury bills market. “We anticipate robust system liquidity to support investor demand in the Treasury bills secondary market, maintaining downward pressure on yields. Additionally, the DMO is scheduled to conduct an NTB PMA next Wednesday (May 20), with N650 billion in bills expected to be offered.”
They added that, “At the auction, the elevated liquidity in the financial system is likely to support strong demand, with stop rates expected to remain broadly stable or edge marginally lower.”